Louisville vs. Southern Indiana Investing

[Matthew Norton]

Hello Ketuckiana people,

I'm Matt, a local teacher, and I'm looking to buy my first buy and hold investment property this summer, and I plan to house hack for the first year. I live in Louisville in the Highlands currently, but don't expect I'll find a place around there in my price range. I am looking to spend up to $200,000 on a property (single or multi family). I'm wondering about the differences in investing in Louisville (Germantown, Clifton, Irish Hill, Saint Joseph, Hikes Point, Beechmont and some of the areas around there) vs. Southern Indiana (New Albany, Clarksville or Jeffersonville). 

Here are things I'm specifically wondering about the differences in:

-Long term appreciation

-Taxes and tax incentives

-Rent prices

-Expected Cash on Cash roi

-The 1% rule (Can I expect to get that or more?)

-CAP Rate

-Expected cash flow/unit

-Any other headache about either state (tenants rights, difficulty with water/electric companies, etc.)

Feel free to share any other helpful information you think a first time investor might need. Thanks in advance for all your help!

-Matt-

[David Heath]

Hi Matt. I have rentals in both Louisville and Jeffersonville. The differences I see are that the property taxes are higher on the Jeffersonville house even though the assessed value is much lower on the property. The other thing is the rents are a little better on the Louisville properties.